Mean Green

Less than fifty years ago it would have been hard to imagine a home that was powered by the sun. It would have been even less possible to imagine a backpacker who used a slim and collapsible solar panel mounted to their backpack to power a GPS unit. Today, we are all ready at that point. We have been rapidly assessing the alternative energy sources that will eventually free us from the use of coal, nuclear, oil and gas energies and we have been implementing them in a staggering number of ways.

Among the most popular and well-developed of the alternative energies are those using the sun and those using wind. Solar technology has all ready allowed for the creation for entire power plants that use fields of collectors and concentrated beams of sunlight to produce enough electricity to power entire towns. We have also witnessed the creation of solar chargers that are installed in the same fashion as traditional roofing shingles and which can offer homeowners electrical services throughout the entire day and well into the night. This is all a far cry from the enormous roof-mounted panels of thirty years ago, which provided hot water and some electrical service.

There are also wind-based power plants utilizing enormous windmills or “turbines” and these exist in remote mountainous areas as well as in offshore locations.

Interestingly, many people in the United States have started to really assess what is now called the “carbon footprint”. This is a calculation based on the amount of non-renewable energy used by an individual in any given year. This includes their home electricity and heating as well as their automobile fuel consumption and a number of other “consumer” data. With this fairly accurate data, many consumers are working with alternative energy groups to purchase “carbon offsets”. These are funds donated directly to the groups working in the world of alternative energy. For example, a family of five will use all relevant data to figure their approximate carbon footprint in a single year. The carbon offset group assigns a dollar value to this amount, which the family may contribute in full or in part to the agency. They, in turn, pour the funds directly into the development of a wind farm or solar power plant. In this way, many consumers are able to cancel out their consumption while also contributing to the future renewable energy solutions.

Of course it doesn’t end with wind and sun. There are hydro (water based) technologies still to be explored and there are even alternative fuels already at work – including the Biofuels used in many modern cars and vehicles

We may praise them, we may criticize them…but it’s a fact that India’s eco-politics has had its share of successes and blunders on its way to where we stand now. Time to time political stands attracted bitter criticism on whether protection of the economy was in fact truly based on long-run comparative advantage, or whether it was determined by other, more political motives.

India’s political system has, on many occasions, been unable to grab the given opportunities either due to lack of knowledge or because of political motivation. In the early 1990s when firms like Motorola approached us for facilities to set up manufacturing operations in India, we declined. China welcomed them and the fruits of this association is evident today.

The need of the hour is reforms, the need of the hour is innovation. There is a difference between keeping an elephant and carrying an elephant on the shoulders.

I strongly believe that instead of subsidies and free wares we need to engage them in sectors like biofuels, bamboo cultivation and products, and medicinal plants. Each of these can engage millions. These are policies that will not hurt the economy and all the same provide them the much-needed regular flow of income. Similarly, projects that entail huge earthworks including gram sadak projects, the linking of rivers will be able to absorb millions who may be dislocated and at the same time unleash the country’s productive potential. They are the real social security that will take the nation’s economy to unscaled heights.

Political parties need to rise above political equations and vote-banks. We can’t defer reforms for the forthcoming elections.

Having said that however, politics is also not without economics. The government-run railways are running in profit, the navaratnas are running in profit, many other sectors too are. Why? I would say they have brought in place reforms and innovative ways to become profitable.

Recently when I was in Gujarat, I saw a new trend emerging there. With a view to attracting several overseas companies to set up base in the state and to provide job opportunities to locals, the State government has taken up an ambitious project called SCOPE (Society for Creation of Opportunity through Proficiency in English) to empower the masses to acquire basic communication skills. The government has understood and recognized the fact that manpower is its strongest area and for that they need to possess good communication skills. This is innovation!

Economic strength is itself power. We need added thrust to reforms and that too without delay. The more we delay the process, the greater the lead that others will get over us.

So will our policy-makers play their old game in keeping a part of the society handicapped and play vote-bank politics or will they bring in reforms, all the same including the larger section of the society? The answers we will have to seek within ourselves!

If it happens to be that you are interested about biofuels solar and wind as renewable energy systems, you’re in luck! the information contained in this brief review will give you a new slant on the possibilities of the useable power of the sun. What would you say if someone were to offer you a plan which easily enables you to convert solar energy to home electricity for an unbelievable ridiculous cost – is that possible? Keep reading the following article.

It seems like only yesterday, taking the leap into solar-generated power for your home electricity was considered quite an expensive investment that only few could afford, yet for many it remained something to aspire to. You are one of many thousands who search the web for biofuels solar and wind as renewable energy systems, which confirms that curiosity about green technology has grown, and with it the quantity of people who look for innovative solutions in this electrifying new area.

I am pleased to announce the great news that the solar energy dream has become reachable and is no longer expensive. now anyone can get up and running with a lifetime supply of no-cost clean energy. The ability to power your home with this clean energy source has long existed, but for most of us, the cost kept us from getting on board; there was no choice but to keep on with the status quo and buy all our electricity, wasting hard-earned money on a basic need.

Before you go any further with your investigation into biofuels solar and wind as renewable energy systems, You should hear about the latest progress in this field: a leading specialist in renewable energy found a secret way that enables you to fabricate solar panels and start reaping the cost-effective and earth-friendly rewards of solar power through the use of simple and inexpensive materials that can be found anywhere. I realized that there happen to be many satisfied users of solar energy, both in the united states and around the world, who are able not just to create enough green energy to power their entire house, but in addition, actually make money by selling their extra power to the electric company. Being that affordable and accessible, homemade energy production is going to create a much-needed revolution in the field of energy and electricity.

I am just back from spending a week with 250 agricultural journalists from all over the world. The International Federation of Agricultural Journalists congress is an annual event that meets each year in a different country. This year we visited Austria and Slovenia – next year the congress will come to the United States and we will entertain the group in Fort Worth, Texas. It is always interesting to get perspectives on agriculture from other countries. Biofuels production was a big topic of discussion and many people that I talked to were very interested in the progress being made in the US toward cellulosic ethanol. We visited a wood biomass plant in Austria, but their focus is using that for energy production, rather than liquid biofuels. Of course, food versus fuel was a topic of discussion. The organizer and president of this year’s congress was former European Union agriculture commissioner Franz Fischler, who is a native Austrian. He calls the food versus fuel controversy “unfair.” “They don’t differentiate between food price and agriculture price and the agriculture price is usually only a small component of the final food product,” Fischler told me during an interview about biofuels production in Austria. Fischler says that second generation biofuels will be key in meeting long term renewable fuels goals for all countries, but it has to start with first generation ethanol from corn. “That’s why we have to start now,” he added. Austria has ten biodiesel plants but so far only one ethanol plant. “It seems to me that biodiesel is the most difficult concept as far as sustainability is concerned,” Fischler said, mainly because soybeans and other oilseeds are less economical to grow in that region, compared to corn.

ght (c) 2009 Wes Fernley

Remember when you were a child and the family sat in front of the fireplace after dinner on a cold, snowy evening? The warmth of the fire was only part of the reason those times are so memorable. The flickering logs and the smell of burning hickory wood all contributed to the physical and emotional warmth the roaring fireplace brought to those evenings. Nowadays, if we stoke our fireplaces, we feel guilty because we are consuming trees, those magical, natural, renewable (but threatened) sources for so many of the comforts we take for granted in this age of consumption.

Never before has so much paper (made, of course, from those precious trees) flooded every aspect of our lives. We can’t keep up with the piles that arrive in our mailboxes. Recycling centers even have separate containers for newspapers and magazines. It’s impossible to think of what we would give up in our comfortable lives if we didn’t have trees. For that reason, burning it in our fireplaces seems an outrageous waste.

The good news is that we don’t have to give up our fireplaces or the warmth and satisfaction they bring. We can use other fuels, and with a set of artificial logs, we will still get much of the same satisfaction. If we want the smell that comes only from logs, there are many artificial sources for that, too.

The ventless fireplace has been in the market place for some time now. In other words, a chimney is not required for these fireplaces. They can burn gel fuel or gas—either propane or natural. These fireplaces come with realistic-looking logs and usually don’t cost a lot to operate. The purchase price for a freestanding one is quite low—beginning generally at about $500. Vented fireplace inserts that use either propane or natural gas and have realistic logs have also been on the market for several years and are not very expensive but must be installed by a professional.

Now comes the best solution of all for those who hanker for the fireplace of their childhood without the guilt that comes with burning nonrenewable fuels: fireplaces that burn biofuel. The good news is that they can be obtained in either ventless or vent-free setups. In other words, if you already have a chimney, you can install a bio-fuel burner; however, if you don’t have a chimney, you can buy the ventless model providing you have good air circulation in the room.

These are ideal for the user who suffers from allergies because no smoke or airborne particles will be released. They can even be mounted on a wall.

The fuel is produced from agricultural crops and does not pose a hazard to the environment. Forty percent more efficient than gas, a liter can burn for up to five hours. While it gives off a little steam and a very tiny amount of carbon dioxide, the amount is so small that it doesn’t create greenhouse gases. The fireplace itself is a bit more pricey than gas models. The fuel, itself, can be ordered via subscription with 12 liters a month costing a little over $100 per month.

In 2009 the average, American household spent $2,200 annually on energy; and approximately half of that money was for heating and cooling. However, washing clothes in cold water saves money because up to 90% of the cost of washing clothes comes from heating water. Changing the thermostat by a degree for 8 hours a day – while homeowners are at work or asleep – saves 2% on heating or cooling. Sealing electric outlets in exterior walls with inexpensive foam gaskets keeps heated or cooled air from leaking out. It seems being energetic saves energy.

California will be the first state to save energy by imposing energy efficiency standards for televisions. As televisions increased in size, residential energy use attributed to televisions increased from 3%-4% in the 1990’s to 8%-10% in 2008. If nothing was done, the percentage was expected to reach 18% by 2023. As of January 2011, however, televisions 58 inches and smaller must consume 33% less electricity. By 2013 they must consume 49% less. Considering these new energy standards are expected to save California consumers $1 billion annually, the California Energy Commission’s unanimous vote put vision into television.

New vision is responsible for getting more natural gas from shale. Because of a combination of horizontal drilling and water fracturing (water and sand forced into rock at high pressure to open tiny cracks), U.S. natural gas reserves are 35% higher than previously thought. For example, a shale formation from New York to West Virginia is believed to hold 500 trillion cubic feet of natural gas – equal to 80 billion barrels of oil. Natural gas is cheaper than oil and produces less carbon dioxide than coal, but it is still a fossil fuel. Thus it’s being thought of as a transition fuel – not as energy’s last gas-p.

What the U.S. needs is sustainable fuel and E. coli can provide it. The same microbe in the news for tainting food can produce biodiesel fuel. Scientists at a San Francisco-based company have genetically engineered E. coli to excrete biodiesel. Because the excreted fatty acids are almost like conventional hydrocarbon fuels, delivering this new fuel to consumers wouldn’t require any changes from the present system of delivering gas. Large scale commercialization is expected by 2013 at a competitive price with oil at $40-$50 a barrel. In reshaping the world’s fuel supply efficient, economical, sustainable E. coli could be a driving force.

When the Founding Fathers of America declared its independence, they could not have imagined that, 232 years later, the United States would be so dependent on foreign countries before oil gushed from a well in Titusville, marking the beginning of the global oil economy.

For how long will America depend on foreign countries for oil?

 The US is literally sitting on a massive energy source this is because one quarter of the world’s coal reserves are located within the nation’s borders.

The US generated 3,940 terawatt hours (TWh) of electricity in 2004, with more than half of the electricity coming from coal-fired power stations.

President Obama is not even the first president to promise that America will not rely anymore on countries of the Middle East to get oil. President George W Bush said the US was “addicted to oil” which threatens to undermine future economic growth, in one of his state of the union address.

Former President Bush said “I hope to move beyond a petroleum-based economy, and make our dependence on Middle Eastern oil a thing of the past”.

While president barrack Obama said, “The days of Washington dragging its heels are over and it will be my Administration’s policy to reverse our dependence on foreign oil while building a new energy economy that will create millions of jobs.”

In a move seen to bring a ray of hope to Americans on the oil issue, Speaking from the White House, the President on Monday announced that he was directing the Environmental Protection Agency (EPA) to reconsider an application by California and 13 other states to set stricter limits on greenhouse-gas emissions from cars and trucks, opening the way for tighter fuel efficiency standards nationwide.

Obama has an ambition of directing the Department of Transportation to issue guidelines that will ensure the U.S. auto fleet reaches an average fuel economy of 35 miles per gallon by 2020 at the latest; therefore, the directives signal Obama’s willingness to take on America’s disastrous auto sector, which is bleeding money even as it contributes heavily to climate change and the country’s addiction to foreign oil.

What America should do to get its oil?

- The government must first become independent of oil. It means giving drivers a choice between oil and other fuels.

- Ending oil dependence will require political leadership; the changes required to end oil dependence are far-reaching. Many current proposals are far too small. For the big change needed to solve this problem, presidential leadership is essential.

-  A keen analysis of the various policy and technology alternatives; plug-In-Cars, Biofuels, Fuel Efficiency, Coal, have effectively no impact on the transportation fleet in the short or immediate term unless more electric vehicles are invented.

Although the White House sees ethanol meeting up to 30% of the nation’s fuel use, it admits that it will take around 15 years to switch the nation’s cars to new technologies.

 The forecast of the US Energy Information Administration (EIA) shows that this figure will exceed 5,840TWh by 2030, with coal still being the dominant player. But coal is the most polluting of all fossil fuels.

 To tackle the environmental impact of burning coal, the president has earmarked a further $281m (£158m) for research into clean coal technology. With all these in mind it remains to be seen whether America will find its own oil.

There are a lot of things to distract the investor in today’s climate of news driven swings on the stock market. Clearly progress on a rescue package for the country’s financial services sector is dominating proceedings at the moment. Supply of capital and credit are of major concern. However, supply destruction as well as the insatiable and refined appetite of the developing world are at the root of a crisis of a different kind.

In this case, we are referring to agriculture. Feeding an ever larger and more affluent world population is putting a strain on supply which in turn is driving up prices. In addition, the rise of the biofuel industry is adding to the robust demand side story. Yet weather, access to fresh water and diminishing areas of arable land are among the factors hampering the supply response. Add to this our bearish view of the US dollar and an anticipated shift in government spending priority and the outlook for higher food prices is compelling in our opinion.

The US is the world’s biggest producer of two of the world’s staple commodities. In the case of corn, the country accounts for approximately 70 percent of global exports and approximately 40 percent for soybeans. In our view, as we will see below, both commodities are set for an increase in price.

This month, the US Department of Agriculture (USDA) warned of a lower than previously expected corn harvest courtesy of an arid August. In addition, the USDA commented that harvests for corn will produce 1.8 percent less corn than forecast last month, while the soybean harvest will drop 1.3 percent.

While US harvests yield less and less, the US dollar is set to purchase less and less.

Despite the recent bout of dollar strength, the bailouts of Fannie and Freddie followed by AIG and now a massive $700 billion rescue package present a more accurate harbinger of things to come. The Fed may have resisted a rate cut this month in a bid to control inflation, but the potential inflationary impacts of recent bailouts should not be underestimated. And the resulting weaker dollar will in our opinion only serve as rocket fuel for commodities prices.

The flood of US dollars circulating around the world economy is only matched by floods of a literal kind which seem to batter the US on a regular basis. If it is not Gustav, it is Ike.

Whether or not global warming is to blame the fact is that the planet’s climate is becoming increasingly volatile and acute. Droughts, severe winds and floods are hitting the headlines on a more frequent basis. These events, more so than for other goods and services, can have a significant influence on agricultural supply.

Indeed, the supply crippling hurricanes which are erasing the Midwest grain crops are precisely the kind of natural disaster that, under many climate forecasts, will become routine a few decades from now.

Hurricane Ike for example made its effects felt far beyond the Gulf States. It dragged its winds and rains up the Mississippi River Valley and across the eastern ‘Corn Belt’, flooding or flattening crops.

Supply is struggling, but that is just one side of the equation.

Arguably the main force behind the soft commodities juggernaut is the growth of the world population. It is anticipated there will be 9 billion mouths to feed on the globe by 2050. And no matter the economic climate, the population has to eat.

Not only is population soaring, but many of the newcomers are wealthy enough to eat meat. Given that it takes an average of eight pounds of grain to make a pound of meat, the dietary requirements of the world’s burgeoning middle class is resource intensive.

While an economic malaise presides over the western world, over in the East it is business as usual. The Chinese and India freight trains continue to race ahead as economic growth is supported by both global AND domestic demand.

In China, (where annual GDP growth could fall as ‘low’ as 9 percent) is it estimated that 500 to 600 million people are set to relocate into cities over the next 10 years. China’s urbanisation represents the single biggest mass migration ever and is a sign of the burgeoning prosperity within the country.

As a result, current levels of demand for refined food are soaring while production levels are struggling to keep up.

Adding further fuel to the fire, the US has a desire to reduce its dependence on oil whilst stepping up the use of biofuels. So as the need to feed the burgeoning human population puts strain on supply, the search for alternative energy is exacerbating the situation.

We are far from convinced that ethanol is the answer to soaring energy costs but as the price of oil remains high, the pursuit alternative sources of energy continues at pace. Doubts have arisen about ethanol’s ability to lower net CO2 emissions (processing is energy intensive), and the diversion of crops to biofuels has contributed significantly to higher food prices.

The question of whether biofuels can be produced in a manner that does not send food prices shooting up, and brings an environmental benefit, is crucial to the future of the entire nascent biofuels industry.

For the time being, the alternative energy industry is playing its part. But there are additional factors.

Global water shortages are adding to the problem. Food production is highly water intensive. And according to the UN, agriculture is the number one consumer of freshwater. And looking ahead as the price of water is propelled skyward, we believe food prices will inevitably surge forward.

Scarcity is also a major issue for farmland. The majority of arable land is already under cultivation and with more and more land being used to produce corn for fuel less space is available for food production. And as the level of housing and business development increase, it is farmlands that are making way.

Furthermore, subsidies in countries where production is uneconomic will eventually and reluctantly fall as government spending is diverted away from agriculture. Indeed, right now in America it is not difficult to see that the government has other serious cash calls on its resources.

All factors considered high food prices are set to get even higher. Indeed, the refined appetite emanating from the East ensures that the effects of lagging global supply are set to have an alarming effect on food prices over the long term.

As such, we believe exposure to soft commodities can form an important part of a well diversified portfolio. A relatively ease way to accomplish this is through the PowerShares DB Agriculture Fund (AMEX, DBA), which we have recommended to our own clients in the past.

IMPORTANT: This message, together with the Fat Prophets website and all its contents have been prepared for general information only, and as such, the specific needs, investment objectives or financial situation of any particular user have not been taken into consideration. Individuals should therefore talk with their financial planner or advisor before acting on any information present on this message or the Fat Prophets website. Past performance is not a reliable guide to future performance, and investors should be aware that returns can be negative. For a full explanation of the performance calculation methodology, please visit the Fat Prophets website.               

n than not, the phrase “frivolous lawsuit” is somewhat redundant. Such is the case with San Antonio-based fuel refiner Tesoro, which has filed a lawsuit in California to block a regulation that would boost ethanol consumption in the state by 2010.

The company, which operates refineries in Los Angeles and the city of Martinez, says “the new fuel specifications could conflict with the state’s push to cut greenhouse gas emissions and could have ramifications for the environment and U.S. food prices.”

The New Fuels Alliance, a group that includes the the California Renewable Fuels Partnership , calls the suit “a blatant attempt by Tesoro to try to use the regulatory and legal process to gain competitive advantage in the market place.”

A statement by the alliance continued, “Other oil companies are moving toward increased ethanol use to extend gasoline supply, lower cost, and even increase profits. Tesoro didn’t see this market shift coming and is now trying to gum up the works based on a feigned and disingenuous concern about climate change and food prices.”

The LA Times blog GreenSpace notes rightly that the “text of the lawsuit, filed in Sacramento Superior Court, says precious little about Tesoro’s worries over food supply and prices. Rather, the company’s core complaints are that California Air Resources Board’s new rule: takes effect too quickly, forces companies to pay for emissions offsets if they don’t meet the 2010 deadline, and requires expensive refinery modifications that might not be compatible with California’s still-evolving Low Carbon Fuel Standard.”

Reporter Elizabeth Douglass concludes, “The problem for Tesoro and other refiners is that the whole move to biofuels is eating away demand for its products. That might have something to do with the company’s sudden concern about ethanol’s impact on the environment and the nation’s food supply.”

Nice to see even the LA Times can see through this charade.

Post Update: Make sure to check out the post on the GreenSpace blog and add your comments as they are running 3 to 1 against Elizabeth’s observations.

Ohio is the heart of the Industrial Midwest, and America’s bellwether state, rocked in recent years by the collapse of the U.S. manufacturing sector. Auto salvage and recycling are big business here, and with labor unions—a major power in the state—now onboard with green job efforts, Ohio is rapidly engaging in all manners of environmental projects. Here is the latest in recycling and the environment for the Buckeye State.

Recycling To Be Expanded in Downtown Columbus

Ohio’s capital city is a bustling urban area. With more than 100,000 people working, living and shopping in downtown Columbus every day, solid waste is produced by the ton. With space beginning to look tight in the county’s landfill, and increased concerns about environmental damage, Columbus’ civil and business leadership has inaugurated an innovative new recycling program for the city’s downtown.

The Capital Crossroads Special Improvement District is working to provide recycling for 35 property owners in downtown Columbus. It offers a collectively bargained recycling pickup contract for the businesses, offering greater leeway and input as to who hauls the recyclables and when and how they go about doing it. Many wait to see how the unique public-private environmental partnership will go.

Ohio Gets Department of Energy Grant for Alternative Energy

Energy is at the core of many of our environmental problems, and Ohio’s history as a coal producing and coal burning industrial state has heightened awareness of energy’s precarity. With President Obama’s stimulus package in full effect, money for clean energy and other environmental improvements is raining down on the Buckeye State.

Federal stimulus money from the Department of Energy is matching funds raised by a state government initiative to increase Ohio’s utilization of renewable energies—at least $45 million for simply testing wind turbines. Recycling is also getting federal grant money, though auto salvage and recycling may or may not be involved. So-called biofuels—hydrocarbon fuels made from agricultural products such as corn, sugarcane and grasses—get a big boost, as does a new $30 million fund (to be maintained in part by revolving contributions from the DOE) to provide ongoing energy efficiency improvements around the state.

Cuyahoga River’s Comeback Making Waves

The New York Times came to Cleveland this month to report on what the EPA first declared—the Cuyahoga River has turned around. Cutting through downtown Cleveland and for years buffeted by heavy industry, the waterway had become perhaps the most polluted in America. The most famous image was from 1969 when the river actually caught fire and city firefighters struggled to put out the blaze. The Times reports that the iconic image of a river so polluted it could burn was a major inspiration to the nascent environmental movement.

Forty years later this month, things have changed. The EPA is cautious in its praise, noting that the improvements have been remarkable—fish are back, recreation on the river has increased and a fire would be impossible at this point. Things have changed, and with new environmental initiatives in the state, further improvement is anticipated.